Sunday , November 24 2024

Business: Retail investors' share in Nifty 50 decreased due to increasing attraction of midcap-smallcap | News India

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The share of Nifty 50 companies in the portfolio of retail investors is the lowest in the last 22 years. This ratio has come down to 36.8 percent on June 30.

Also, the total institutional stake in Nifty companies has also declined significantly since March 2001. Data from the National Stock Exchange (NSE) shows that the share was reported to be 60 per cent on June 30. The main reason for the change in this investment equation is the increasing attraction among investors towards investing in midcap and smallcap companies. Because, in the current market, investors get the highest returns by investing in midcap and smallcap companies. The Corona epidemic has been most successful in attracting investors of this segment. The benchmark Nifty has gained 122 per cent in the last five years. If it is calculated as a ratio of annual returns, then the percentage on it stands at 24 per cent annually. During this period, the BSE index has also increased from 250 per cent to 350 per cent. These bumper returns have attracted investors to invest in mid-cap and small-cap stocks directly and through mutual funds.

The investment equation has changed

* Individual investment portfolio in Nifty 50 companies declined 36.8 per cent as on June 30

* In the last five years Nifty has gained 122 per cent while BSE has gained 250 per cent to 350 per cent.